HK regulator gets access to mainland audits

Hong Kong’s securities watchdog will be able to see audit papers kept on the mainland for investigations under an expanded cooperation accord that allows the city’s regulators to access mainland-based companies’ audit records, reports Caixin Global.

The Ministry of Finance, the China Securities Regulatory Commission (CSRC) and the Hong Kong Securities and Futures Commission (SFC) signed a memorandum of understanding Wednesday granting the Hong Kong securities regulator access to audit working papers on the mainland.

This is the second such agreement between institutions from the two sides. In May, the finance ministry’s Supervision and Evaluation Bureau signed a separate memorandum with the Hong Kong Financial Reporting Council, the city’s accountancy regulator, on cross-boundary collaboration of audit paper inspection. Under the agreement, the cooperation is limited to the two parties, and the Financial Reporting Council is not allowed to transfer the papers to any third parties, including the Hong Kong securities regulator.Read more.

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